Investors must address the issue of capital gain taxes when selling or disposing of real estate, a business or other highly appreciated property (“assets”). Real estate or personal property that has appreciated or grown in value while owned by the Investor will generally trigger the payment of capital gain taxes upon the sale or disposition of the asset. In addition to capital gain taxes, asset sales or dispositions may also trigger depreciation recapture in the year of the sale or disposition.
Generally, most Investors are searching for income tax planning strategies that will allow them to defer, structure, exclude or avoid the payment of their capital gain taxes and depreciation recapture taxes. Sorting through all of the various tax-deferral and tax-exclusion strategies and structures available to you can be very frustrating, complicated and confusing. And, tax codes, regulations, and rulings change frequently.
For a detailed explanation, please visit this link.